Simple Incentives to Improve CEO Succession Planning

19 Mar Simple Incentives to Improve CEO Succession Planning

A principal responsibility of the board is to manage the succession risk, not the succession plan for executives. Board members have an obligation to protect the company from gaps in executive talent by ensuring leadership continuity, particularly during times of CEO succession. To this end, we believe simple incentives can be used to directly focus effort on the succession result. We propose that compensation committees consider requiring CEOs to have “skin in the game” for a brief post-employment period to shift the focus from the process of succession planning to the actual succession result. Learn more…